No increase in salaries, pensions in federal budget

LAHORE: The federal cabinet on Friday, while approving the budget for the upcoming fiscal year decided not to increase salaries and pension for government employees.

The move means that salaries and pensions for the federal governments employees will remain at the same level for the upcoming fiscal year.

The decision comes at a time when the country’s economy faces the negative effects of the spread of Covid-19 and next year's tax collection targets for the Federal Board of Revenue (FBR) have been slashed. 

Earlier on June 9, the Pakistan government and the International Monetary Fund (IMF) had reached a consensus on not putting a freeze on the increase in salaries and pensions of government employees in a bid to protect government employees from the effects of inflation.